These niche growth stocks have gains ahead

Article Excerpt

Garmin and Warner Music have strong competitive prospects in their niche markets, and each stock is especially attractive for new buying right now. GARMIN LTD., $208.77, is a buy. The company (Nasdaq symbol GRMN; TSINetwork Rating: Extra Risk) (Shares o/s: 192.4 million; Market cap: $40.2 billion; Dividend yield: 1.4%) makes GPS devices and software for five different markets: fitness, outdoors, auto, aviation, and marine. In the three months ended December 31, 2024, Garmin’s overall revenue climbed 22.9%, to $1.62 billion from $1.48 billion a year earlier. Excluding one-time items, the company made $2.41 a share in the quarter. That was up 40.1% from $1.72 a year earlier. Garmin’s balance sheet is very strong: it holds cash of $2.5 billion and has no debt. Meanwhile, the company’s high research spending promises a bright future. Garmin spends 17% of its sales on research to stay ahead of the competition. The company continues to successfully reconfigure its product line to meet constantly evolving consumer demand. This includes developing new devices…